Unexpected crop on import

Question

A friend showed me an imported file which appears to be cropped when imported. I've just done a similar import on my PC and the behaviour is the same and I can't explain it to him.
It started as a jpg camera file and he edited it in Photoshop then saved the single-layer result as a jpg.
When we come to import it from a hard drive location to the LR3.0 (Vista 32, 4Gb RAM, lots of HD) the thumbnail looks like this (the righthand images is selected):
After the import the file displays like this:
A copy of the original is at:  http://www.david.lingard.dsl.pipex.com/LRTest/
If anyone can explain what is causing this we will both be very interested and grateful!

Answer 1

The file indeed has a crop in its embedded XMP metadata:
   crs:CropTop="0.222238"
   crs:CropLeft="0.334288"
   crs:CropBottom="0.702658"
   crs:CropRight="0.814708"
   crs:CropAngle="0"
   crs:CropConstrainToWarp="0"
   crs:HasCrop="True"
That indicates that the files has passed through Camera Raw at some point.
Just go to crop in Lightroom and reset it.